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01/05/13 10:26 PM

#19344 RE: vip1999 #19341

Yes you can have multiple accounts. For example you may have an account you manage, and one that someone else manages. Or in this case you might have a cash account, and a margin account.

The only way to really prevent your CTIX or other shares from being loaned out for shorting is to have them in a cash account, or transfer the shares to the transfer agent, or hold them in certificate.

Brokers vary, but with IB you would have separate accounts. One for cash and one for margin. Fidelity lets you have both types in one account.

The lending rules also vary, but in general the brokers can lend your shares from a margin account regardless of a GTC sell order. Rather they have various rules. Some only lend to the value that you use any margin, or if you use margin at all, some lend regardless of whether you use any margin in that account.

Note the use of margin would be in any stock, not the one they are lending as CTIX is not marginable yet. Same if you held some non-margin penny stocks in a foreign currency, you might not reaslise it, but you have an FX margin balance.

So if you really want to prevent your CTIX shares from ever being lent for shorting, open a cash account and transfer them, which is a simple process.

If the CTIX $51.53 took this step, all those shares would be unavailable for short lending. But I'm afraid the GTC sell orders have no effect.

(All this can be confirmed by reading your brokerage margin agreement or asking them.)

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